If you want to read through the Abenomics Word List, and watch the Word List YouTube, click away. As always, the story which I sourced the words from is linked at the top of the Word List PDF. (it's here too).
Thank you. Enjoy. Like us on Facebook or even better, Share. Thank you.
Welcome, welcome to Vocab Voyage today. Today we are going to talk about Abenomics. Isit working. Abenomics, Shinzo Abe - his way to save Japan. Is what he's trying to do
working? We don't know yet.
However, there has been a bit of a spanner in the works due to the drop in oil prices. Shinzo Abe and his economic experts said we would have 2% inflation by the end of the year. What they didn't count on was oil prices going down. I saw at my local servo the other day that it's at 133 yen which is down at least 25 yen. So good news for us, bad news for ...... I'm no economist but I'm not sure how... So low inflation means prices are lower, which means
companies get less money. I imagine that's it. So originally the target for inflation was 2%,
then it was changed to 1.7%, and now, after these oil price decreases it's come down to 1%.Some critics are saying, 'Was the 2% ever possible?' So now, at the moment, the Bank of
Japan, they have to have a think about what they're going to do. Are they going to try and
get inflation up? At the moment they can sit on their hands and do nothing. If something
doesn't happen soon they can do more quantitative easing, which is the first arrow of ShinzoAbe's three arrows. So they've still got plans, and they're confident.
Some of the experts, or analysts - these guys, this next story - are from Shinzo Abe's party, so you have to take what they say with a grain of salt; but they are sure of some concrete
movement in 2015. They say the sadness from the sales tax hike has gone, interest rates
are coming down. Interest rates are coming down? I don't know how interest rates can comedown anymore in Japan. Back in New Zealand if you put money in the bank I'm sure you get about 4.5% interest. If you want to get a house, if you want to get a mortgage for a house,
it's like 6.5%. It's probably more, I don't know. I haven't been there for a long time. So more
inflation. I'm not exactly sure how all that works. I'm no Adam Smith. But Shinzo Abe's
economic guys said the lower oil prices, while they held back inflation, they did offer a
tailwind for the economy because Japan spends a lot of money importing fuel and gas, and
so they will have more money for other things.
Finally, Abenomics vs Modinomics. Shinzo Abe - Abenomics. Narendra Modi - Modinomics. The Prime Minister of India (I said the wrong thing, sorry), he also has an economic recoveryplan named after him. It's called Modinomics. Japan's external minister has been in India
having a four hour meeting with her counterpart in India. They talked about nuclear stuff.
They talked about the 'Made in India' campaign. What India want is more Japanese
companies to make their stuff in India, rather than in China.